The market extended the previous day’s gains to rise 0.5 percent on October 26, supported by the auto, realty, metal, oil & gas stocks. At close, the Sensex was up 383.21 points, or 0.63 percent, at 61,350.26, and the Nifty was up 143 points, or 0.79 percent, at 18,268.40.
The markets managed to end higher in a volatile trading session on firm global cues. “Upbeat earnings announcements from the US markets set the tone in the beginning, however, choppiness in the index majors, especially from the banking pack, in the middle kept the participants on their toes,” said Ajit Mishra, VP-Research, Religare Broking.
The Nifty ended higher by 0.8 percent at 18,268. Most sectoral indices traded in sync with the benchmark to close in the green, he said.
“The broader indices also witnessed a breather after five days of slide and posted decent gains,” Mishra added.
The broader indices outperformed the benchmarks, with BSE midcap and smallcap rising over 1.5 percent each.
Tata Motors, Tata Steel, SBI Life Insurance, Titan Company and JSW Steel were among the major Nifty gainers. Losers included IndusInd Bank, ICICI Bank, Power Grid Corp, HUL and NTPC.
All the sectoral indices ended higher, with auto, infra and metal indices up 1-2.5 percent.
Stocks and sectors
On the BSE, the realty index was up over 3 percent and metal index nearly 3 percent. Oil & gas and auto indices rose 1-2 percent.
More than 150 stocks, including CG Power, Tech Mahindra and Punjab National Bank, hit a 52-week high on the BSE.
If the Nifty sustain above 18,099 in the next session, strength shall further extend towards 18,468, said Mazhar Mohammad, Chief Strategist–Technical Research & Trading Advisory, Chartviewindia.in.
“Interestingly, our twin momentum oscillators generated a buy signal after today’s move. Hence, one should retain a positive stance unless the Nifty closes below 18,099 levels, as such a close can threaten the recent low of 17968 levels,” Mohammad said.
If the Nifty registers a close below 17,968, it can slide to 17,450. For the time, traders should hold long positions and look for a target of 18,450 by placing a stop below 18,090 levels, he said.
Market outlook for October 27
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
We are of the view that as long as the Nifty trades above 18,200, the pullback rally is likely to continue up to 18,375 and on further upside, the index may rise to 18,450.
On the flip side, a slide below 18,200 may drag the index to 18,100-18,050.
Vijay Dhanotiya, Lead Technical Research Analyst, CapitalVia Global Research
The level of 18,200 will be an important support for the Nifty. If the market sustains it, we can witness a positive momentum that can lead to 18,600.
Momentum indicators like the RSI and MACD point to a positive momentum in the market.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.